Mar
20

Lodging Fundamentals Rise to Pre-Recession Highs

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As growing numbers of tourists and business travelers check into hotels, the U.S. lodging occupancy rate is finally expected to reach pre-recession levels this year, according to the March forecast by PKF Hospitality Research, LLC.

Atlanta-based PKF-HR forecasts that hotel managers should be able to become more aggressive in room pricing, with average daily rates (ADR) – a leading driver of hotel net operating income – increasing by just under 5% this year and another 5.7% next year.

Revenue per available room, meanwhile, should increase by 6.6% this year to $73.20 and by another 7% in 2015, continuing a streak in which RevPAR has increased by 5.4%, 6.7% and 8.1%, respectively, in the last three years.

Despite fears from some in the hotel industry about overbuilding, escalating demand over the past two years for the nation’s 4.9 million rooms has helped keep occupancies in check, according to PKF-HR President R. Mark Woodworth.

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